Hyundai Motor Announces 2014 1H Business Results
• Hyundai Motor sells 2.49 million units worldwide in the first half of 2014
• Sales revenue and net profit stand at 44.40 trillion won and 4.38 trillion won
• Profits decline on stronger won
July 24, 2014 – Hyundai Motor Company, South Korea’s largest automaker, today announced its business results for the first half of 2014. In spite of strong sales of its new models and cost savings, a strong Korean won led to a 5.8 percent decrease in operating profit, compared to the same period last year.
For the first six months of 2014, sales revenue declined 0.3 percent to 44.40 trillion won (auto: 36.19 trillion / finance and others: 8.21 trillion) from a year earlier. Operating profit and net profit also fell 5.8 percent and 5.1 percent to 4.03 trillion won and 4.38 trillion won (including non-controlling interest), respectively, due to the strong won against the U.S. dollar, despite increased sales growth and improved product mix.
Hyundai Motor sold 2,495,837 units globally (Korea: 345,709 / overseas: 2,150,128) during the first half of this year, a 4.4 percent increase from a year earlier. In Korea, Hyundai Motor’s sales went up 6.2 percent, mainly due to robust sales of the recently-launched all-new Genesis and Sonata, while its overseas sales also rose 4.1 percent from the same period a year ago.
In the second quarter alone, sales revenue decreased 1.9 percent to 22.75 trillion won (auto: 18.47 trillion / finance and others: 4.28 trillion) with global sales of 1,268,385 units. Likewise, both operating profit and net profit declined 13.3 percent and 6.9 percent to 2.09 trillion won and 2.35 trillion won, respectively, from a year earlier.
Hyundai Motor forecasts that an unfavorable business environment will continue in the second half, with uncertainties surrounding the global auto industry.
In order to overcome such difficulties, Hyundai Motor will enhance customer confidence by further strengthening its quality management as well as enhancing its brand power to reinforce fundamentals for future growth. In particular, Hyundai Motor will manage the quality of its products from the development stages and strengthen internal training programs to secure top-tier competitiveness.
Hyundai Motor’s efforts on quality management have been proven by a variety of third-party agencies. To name a few, the company’s all-new Genesis and Sonata were rated as one of the safest cars on the road by the Insurance Institute for Highway Safety’s (IIHS) crash tests in the U.S, while Hyundai Motor was also the highest-ranked non-premium brand in the J.D. Power 2014 Initial Quality StudySM (IQS), marking the first time a nameplate has ranked highest among non-premium brands in both APEAL and IQS in the same year.
For the remaining of the year, Hyundai Motor will stay focused on increasing sales and securing profitability by cutting costs and responding efficiently to regional demands with its latest products.
Cautionary Statement with Respect to Forward-Looking Statements
In this release and in related comments by Hyundai Motor’s management, our use of the word “expect,” “anticipate,” “project,” “estimate,” “forecast,” “objective,” “plan,” “goal,” “outlook,” “target,” “pursue” and similar expressions is intended to identify forward looking statements.
The financial data discussed herein are presented on a preliminary basis before the audit from Independent Auditor; final data will be included in HMC’s Independent Auditors report. While these statements represent our current judgment on what the future may hold, and we believe these judgments are reasonable, actual results may differ materially due to numerous important factors. Such factors include, among others, the following : change in economic conditions, currency exchange rates or political stability; shortages of fuel, labor strikes or work stoppages; market acceptance of the corporation’s new products; significant changes in the competitive environment; changes in laws, regulations and tax rates; and the ability of the corporation to achieve reductions in cost and employment levels to realize production efficiencies and implement capital expenditures at levels and time planned by management.
We do not intend or assume any obligation to update any forward-looking statement, which speaks only as of the date on which it is made.
About Hyundai Motor
Established in 1967, Hyundai Motor Company is committed to becoming a lifetime partner in automobiles and beyond. The company, which leads the Hyundai Motor Group, an innovative business structure capable of circulating resources from molten iron to finished cars, offers top-quality best-sellers such as Elantra, Sonata and Genesis. Hyundai Motor has seven manufacturing bases and seven design & technical centers outside of South Korea and in 2013, sold 4.73 million vehicles globally. With almost 100,000 employees worldwide, Hyundai Motor continues to enhance its product line-up with localized models and strives to strengthen its leadership in clean technology, starting with the world’s first mass-produced hydrogen-powered vehicle, ix35 Fuel Cell.